Will you grow your wealth this year? Some of the top-rated savings accounts in February 2024

Australia’s inflation may be falling faster than previously predicted, which could make it easier for savers to grow their wealth. However, it’s important to consider more than just interest rates when comparing savings account options.

The Australian Bureau of Statistics (ABS) found that in the December 2023 quarter, inflation rose by just 0.6% - the smallest quarterly rise since the March 2021 quarter. On an annual basis, inflation was at 4.1%, which is significantly lower than the peak recorded in December 2022.

Lower inflation means it’s easier to find and compare savings accounts that offer interest rates higher than inflation. This will let your money preserve more of its purchasing power, keeping your savings from effectively going backwards.

But before you go and open a new high-interest savings account, remember that there are other factors to keep in mind. For example, some high-interest savings accounts only offer their maximum rates for a limited introductory period, while others require you to fulfil specific terms and conditions to qualify for the higher bonus rate. You may also need to pay fees or other charges, which could offset some of the value that some savings accounts offer. Some high-interest savings accounts also have age restrictions; for example, the First Option Bank Kids Bonus Saver account is only open to savers aged under 18.

It's also worth keeping in mind that some economists are forecasting that the Reserve Bank of Australia (RBA) could end up cutting the cash rate later in 2024. If these rate cuts are passed on to savers, this could potentially affect your saving plans.

To help you get a better idea of the overall value offered by different savings accounts, consider comparing RateCity’s Real Time Ratings™. These star ratings combine the interest and flexibility offered by different savings accounts, and are frequently updated so you can be confident in their accuracy. Some of the top-rated savings accounts in different categories are ranked on RateCity’s Savings Account Leaderboards, with some of these top-rated savings accounts becoming eligible for the RateCity Gold Awards.

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